E-COMMERCE

E-COMMERCE STRATEGY

F0CUS;

NAME: MWINJI MWILA（ 穆位拉）

STUDENT NUMBER :198003002

12/30/2021
INTRODUCTION

At its core electronic commerce is simply the buying and selling of goods and services using the internet,
when shopping online. It’s when a business sells online. However the term is often used to describe all
of seller efforts, when selling products directly to consumers it starts when a potential customer learns
about a product and continues through purchase, use, and ideally ongoing customer loyalty. Data
powers the most successful ecommerce operations, which take advantage of best practices such as
targeted email marketing, audience segmentation, and marketing automation.

The focus of this paper is the strategy of a very popular company amongst the numerous ecommerce
sites in the world known as eBay. EBay began as a small startup with a big vision and revolutionized its
presence amongst the ecommerce businesses around the world. It sells a great deal of various
consumer goods, the other main feature that puts the company on another level is the multi leveled
strategy it employs for success. It provides services to four primary customer sets; consumers, sellers,
enterprises and content creators. The company also provides other marketing and promotional services
which will be discussed further in the paper. With numerous acquisitions and technology advances over
the year’s eBay is one of the world’s top 10 ecommerce companies.
TECHNOLOGY STRATEGY

EBay has used artificial intelligence and machine learning technologies for more than a decade
specifically to match buyers with the right sellers. They use this to enhance the buying and selling
experience on their site. EBay uses artificial intelligence in personalization, search, insights, discovery
and its recommendation systems along with computer vision, translation, natural language processing
and more. They use the artificial intelligence by:

-Improving buyer experience; the site tries to customize the shopping experience of each shopper with
fine tune personalization skills

-Enhance search; the artificial intelligence (AI) understands the context of the search then provides a full
spectrum of relevant products.

-Optimize pricing and selling; this helps sellers identify the best prices when they should list a specific
product and when they should list a specific product when to market themselves to better attract
buyers.

-Machine translation; languages are no barrier between byer and seller thanks to the translation
capabilities

-Advertisement engine; promoted listings on eBay and advertisements off their site are all powered by
the artificial intelligence algorithms to improve the purchase journey and help byers discover more of
eBay’s inventory.

MARKETING STRATEGY

EBay believes these are important to enable it to compete in its market:

-Sharing or advertising products on social media.

-Buy a domain name and redirect it to their store.

-Build links to their store or domain name from other websites.

-Write blog posts that link to their store.

-Advertise through third parties such as Google ads.

NETWORK MARKETING STRATEGY

The marketing managers need understanding of customers’ fundamental needs and drivers of those
needs, conceptualizing products and services that can meet those needs and are feasible in eBay. The
overall outsourcing of online marketing efforts goes to independent affiliates. The introduction of a new
product or service of eBay affiliates. This is done by:

-Increase market shares of eBay affiliates.

-Launching new versions of products that can appeal to new segment of customers or entering into the
market.

-Improve customer loyalty by organizing events and by providing post with information

-Get existing customers to buy more by selling accessories along with the existing products or increase
the usage rate of the existing products.

LOGISTICS STRATEGY

EBay collaborates with global logistics firms to launch the service which will enable sellers on eBay to
offer next-day delivery, same day handling, a fully tracked service and late cut off times to buyers.

PRODUCT STRATEGY

EBay maintains huge online marketplace, where millions of items are sold by auction or fixed price, its
customers carry the inventory helping it keep costs low.
SECURITY STRATEGY

It has many challenges to face such as cyber-attacks but despite these they still maintain certain long
term prospects. EBay implemented and enhanced its protection for buyers in an effort to make the site
feel like a safe retail environment. They encourage users not to their eBay user ID or email address and
password on other accounts and encourage uses to change passwords every 30-60 days.it ensures all
communication over the network is encrypted and secure. Buyers are protected through eBay’s money
back guarantee. The eBay money back guarantee covers most transactions on eBay.

HUMAN RESOURCE STRATEGY

The company’s organizational culture is a pillar for long term success in the rapidly changing ecommerce
landscape. EBay’s corporate culture guides manager in developing strategies that enhance human
resources and addresses challenges in ecommerce. For example, the company’s cultural values
encourage results based effectiveness in the online marketplace platform business. From the very
beginning it was meant to be a marketplace for the sale of goods and services for individuals. It has 25
million sellers. They encourage team work amongst the employees and they require them to think
outside the box for new ideas to help improve the site.
CONCLUSION

EBay is one of the top online retailing businesses in the world. The company has been resilient in
increasing the level of competition, especially with companies like amazon, alibaba and Wal-Mart. The
company like any other has its struggles but still manages to maintain good customer relations in its
work. There is still room for improvement in its various strategies as the years go on to hold its place in
the world of ecommerce powers.

REFERENCES

 www.forbes.com
 www.tech.ebayinc.com
 eBay Inc.-Diversity and Inclusion
 Guiso, L.,Sapienza, P., &Zingales, L.(2015). The value of corporate culture. Journal of Financial
Economics